Comparing the Roles of Sub Brokers and Remisiers

Sub-brokers and Remisiers are two important entities in the investment partnership landscape, acting as a mediator between investors and stock markets. Thus, it is essential for you to understand the differences between the roles of both entities to make informed investment decisions.

This article will explore the differences between the roles of a sub-broker and a Remisier, along with some points to help you select the suitable option for your investment needs.

Sub-Broker and Remisier Meaning

Sub-brokers are entities authorised by a stockbroker to act as their representative in facilitating securities trade. They streamline investment transactions, provide comprehensive investment strategies, and offer services tailored to their clients’ investment needs.

Remisiers are entities that work independently for a stockbroker to help them acquire clients. Their work profile is considerably simple as compared to a sub-broker. They assist new investors by acquainting them with reliable stockbrokers.

Comparing the Roles of a Sub-Broker and Remisier

 

1. Client Acquisition – 

• Sub-brokers – The primary role of a sub-broker is to seek out new clients, provide investment support, and maintain existing client relationships on behalf of a stockbroker.

• Remisiers – The responsibilities of a Remisier are limited to acquiring new clients for stockbrokers. 

2. Trade Execution – 

• Sub-brokers – Investors can rely on sub-brokers to trade in securities, such as bonds, mutual funds, etc. They facilitate smooth trading processes.
• Remisiers – Execution of trades is not in the scope of Remisiers. Their involvement in these processes is minimal. 

3. Market Research and Analysis – 

• Sub-brokers – They are equipped with accurate information to update clients with market insights, research reports, and investment trends.

• Remisiers – They don’t provide any such information to clients. Remisiers focus more on finding clients who are looking to invest for the first time or want to switch brokers. 

4. Client Support – 

• Sub-brokers – Investors can trust sub-brokers to provide them with extensive support, assistance, and guidance regarding their investments. They make sure to address all queries and concerns.

• Remisiers – Remisiers, on the other hand, do not necessarily provide support to clients.

5. Documentation –

• Sub-brokers – They guide and assist investors in completing all the paperwork by ensuring compliance with regulatory standards.
• Remisiers – They are not involved in the documentation processes. Once they acquire clients, the broker handles all the paperwork.

Sub-broker vs. Remisier: Other Key Differences

      1.Requirements – 

• Previously, sub-brokers were required to register with the Securities and Exchange Board of India (SEBI), now, they only have to enter into an agreement with a stockbroker as an Authorised Person.
• The prerequisite for Remisiers is to enlist with a stock exchange. 

2. Compensation – 

• Sub-brokers usually earn commissions on trading they execute for the primary broker.
• The commission for Remisiers depends on the trades of clients whom they have introduced to the broker. 

3. Infrastructure –

      Since sub-brokers handle more comprehensive job roles, they are required to set up an office in a good location.

• Remisiers mostly work independently, therefore, they do not require a specified office space.

Decide: Sub-broker or Remisier?

 Choose a sub-broker if – 

• You require extended services, including comprehensive investment advice, extensive support, and market research tools.
• You prefer to establish a long-term relationship with a professional to leverage guidance.
• You are navigating the investment landscape for the first time. Require assistance with trading and compliance.

Choose a Remisier if –

• You are experienced in all aspects of investment management and only need to get in touch with a reputed broker.
• Client support is not required.
• You are seeking only transaction-based relationships without the need for personalised investment recommendations.

Summing Up
A clear understanding of a sub-broker and Remisier’s roles is crucial to ensure a smooth trading experience in stock markets. It will help you as an investor to select the one that aligns with your investment objectives.
You could also opt for a reliable full-service stockbroker, like Choice, directly if you need assistance with all your investment processes. Choice is a trusted stock brokerage firm with 30+ years of experience in providing valuable financial services and expert guidance to its clients. Backed by an experienced team, they can help you confidently navigate your investment journey.
Get in touch with Choice and take the next step towards your financial goals today!

Disclaimer: Please note that while this article aims to provide accurate and up-to-date information, it should not be considered official financial advice. It is advisable to always consult a financial advisor before making investment decisions.